Compare State Farm vs. GEICO Insurance

July 27, 2014

The very best showdowns, from sports to politics and commerce, always pit the two biggest, boldest teams, candidates or companies against one another. When it comes to auto insurance, this means a stand-off between State Farm and GEICO. But which auto insurance company is right for you – and how will you determine how they best measure up?

Why Compare State Farm vs. GEICO?

Comparing the No. 1 and No. 2 U.S. car insurance companies head to head may reveal one or two unique reasons that will tip the scale to either. With State Farm and GEICO offering such unique discounts and using different algorithms to determine premiums, odds are you’re going to find two different rates. But that’s only one piece of the puzzle. Recommendations from family and friends, perceived customer service levels and other factors all go in to helping you determine the best auto insurance provider for you. In the case of State Farm vs. GEICO, you have a privately held company in State Farm and a subsidiary of the fifth largest public company in the world, Berkshire Hathaway, in GEICO.

About State Farm

State Farm has played the role good neighbor in real life ad on the small screen since 1922, when the company was founded by G.J. Mecherle. Today State Farm is the world’s largest auto insurance company, with 65,000 global employees and agents serving more than 80 million policies. CEO Edward Rust, Jr. now mans the helm of the company, which expanded into the financial services vertical in 1999.

Advantages of State Farm

When you’re the largest auto insurance provider in the world, your sheer wealth of resources provides an advantage that the smaller insurers simply can’t compete against. This translates to more competitive rates and more efficient service. State Farm and its dozens of subsidiaries, from State Farm Fire and Casualty Company to State Farm Mutual Insurance Company of Texas, balance this size with focused areas of specialization. The result is highly satisfied and loyal customers: 93 percent of State Farm drivers say they’ll renew their policies and 85% of customers recommend the company to family and friends.

State Farm’s Top Discounts

Don’t forget to factor in car insurance discounts when doing your rate math. State Farm complements its competitive premiums with the following discounts:

  • Multiple Automobiles – Up to 20% discount
  • Good Driving Discount (three years without moving violations or accidents) – Up to 10% discount
  • Drive Safe & Save Discount (for using a telematics device) – Up to 50% discount
  • Steer Clear Safe Driver Discount (a program for drivers under age 25) – Up to 15% discount

About GEICO Auto Insurance

GEICO has rode a wave of advertising over the past few decades to become the No. 2 provider of car insurance in the United States. With a little help from a caveman, gecko and now a pig – GEICO spends about $1 billion on annually advertising – the company throttled its growth when it became a subsidiary of Warren Buffett’s Berkshire Hathaway in 1996. Founded in 1936 by Leo and Lillian Goodwin, “GEICO” stands for Government Employees Insurance Company because military personnel and government employees were targeted as the insurer’s first customers. That commitment remains steadfast today.

Advantages of GEICO

With the financial backing and deep pockets of Berkshire Hathaway, GEICO has aggressively grown over the past two decades – and backed that expansion with a strong commitment to customer service. The company famously provides a connection to a real customer service rep 24/7. Despite this growth, the insurer has stayed true to its roots by offering special discounts and services for military personnel and government workers. Additionally, GEICO offers a number of other policies, ranging from flood insurance to identify theft insurance, many of which can be bundled together for added discounts.

GEICO’s Top Discounts

GEICO targets the shrewd driver with a number of programs. Be sure to see which you qualify for – and how big of a discount you could net. Here are a few of GEICO’s available discounts:

  • Vehicle Equipment Discount – For features such as driver-side airbags (25% discount) and full-front seat air bags (40% discount)
  • Driving History Discount: Save up to 26% for achieving a five-year accident-free record
  • Good Student Discount: Up to 15% discount on certain coverages with a ‘B’ average or better
  • Military and Emergency Deployment Discount: Save 15 to 25% whether you’re active duty, retired, in the National Guard or Reserves or have experienced an emergency deployment.

State Farm vs. GEICO Which One Works for You?

We didn’t say that seeing how State Farm and GEICO stack up against each other would be easy. But we’re hoping that you have one or two takeaways to help you separate one of these two top-rated auto insurance behemoths from the other. Your premium, discount, and what you hear about State Farm and GEICO from the folks you trust go a long way in determining who you’ll sign up with. And remember: this doesn’t have to be a permanent relationship. Rates ebb and flow, which is why drivers should be proactively seeking out the best possible rate.

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